Dedeaux Lands $190M for SoCal Logistics Portfolio
New York Life Insurance Company provided the 7.5-year financing
By Greg Cornfield October 17, 2023 4:25 pm
reprints
It’s Dedeaux’s day, again.
After acquiring the 99 Cents Only Stores distribution facility for $190 million, Dedeaux Properties announced Tuesday it secured major refinancing — coincidentally valued at $190 million — for three fully leased warehouses spanning approximately 1.3 million square feet in Southern California’s Inland Empire.
Bellwether Enterprise (BWE) announced and originated the 7.5-year, fixed-rate, interest-only loan from New York Life Real Estate Investors.
The warehouses range in size from 220,000 square feet to 823,300 square feet, at the intersection of Philadelphia and South Etiwanda avenues in Ontario, Calif., and are each leased to a single tenant. Representatives declined to disclose the names of tenants or the exact addresses for the portfolio.
Property records show Dedeaux Properties owns and secured financing for a 823,820-square-foot building at 5691 East Philadelphia Street in Ontario, which matches an address for Sears Home Services, but according to online marketing materials from CBRE (CBRE), the building also has a sublease tenant until June 30, 2024.
Dedeaux also owns the 220,055-square-foot property at 2090 Etiwanda Avenue, which matches the address for logistics firm DCG Fulfillment, as well as the property at 5491 East Philadelphia Street, which matches an address for White Horse Logistics.
Ontario and the Inland Empire region continues to outperform the rest of the nation on industrial development and property sales. According to the most recent report from CommercialEdge, the Inland Empire’s $3.37 billion in industrial asset sales through the first nine months of the year accounted for nearly 10 percent of the nation’s total volume.
“The fact that the rents for these properties were so far below market, coupled with the area’s industrial vacancy rate, made for very favorable transaction terms,” BWE’s Max Sauerman said in a statement.
Los Angeles-based Dedeaux owns approximately 6 million square feet of industrial space and has an active pipeline of more than 2 million square feet of warehouse space, including distribution sites, truck terminals, trailer yards and cold-storage facilities.
BWE’s Sauerman, Tyler Shebeck and Erin Briggs originated the loan on behalf of the borrower.
“Despite today’s difficult lending environment, BWE coupled its knowledge of the strong industrial real estate fundamentals in the Inland Empire submarket with a creative loan structure to allow the Dedeaux family to obtain a lower-cost, fixed rate, interest-only loan that was used for growth capital,” Sauerman added.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
